H & M Hennes & Mauritz ABCHIX:HMBS +0.50%74 Interest Coverage is 2.73 as of Feb. 2026, which is 73% below its 10-year median of 10.08. GuruFocus rates CHIX:HMBS with a GF Score™ of 74/100 and a GF Value™ of kr155.07 (Fairly Valued). The stock has 3 warning signs investors should review. Among 741 Manufacturing - Apparel & Accessories companies, H & M Hennes & Mauritz AB ranks better than 56.95% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. H & M Hennes & Mauritz AB's
Operating Income
for the
three
months ended in Feb. 2026 was kr1,567 Mil. H & M Hennes & Mauritz AB's Interest Expense for the
three
months ended in Feb. 2026 was kr-573 Mil.
H & M Hennes & Mauritz AB's interest coverage for the quarter that ended in Feb. 2026 was 2.73.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for H & M Hennes & Mauritz AB's Interest Coverage or its related term are showing as below:
CHIX:HMBs'
s Interest Coverage Range Over the Past 10 Years
Min: 2.39 Med: 10.08 Max: 2977.88
Current: 7.65
CHIX:HMBs's Interest Coverage is ranked better than 56.95% of 741
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.43
vs CHIX:HMBs: 7.65
H & M Hennes & Mauritz AB (CHIX:HMBs) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
H & M Hennes & Mauritz AB Interest Coverage Related Terms
H & M Hennes & Mauritz AB Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
CHIX:HMBS vs RL, LEVI, VFC: Interest Coverage Comparison
For the Apparel Manufacturing subindustry, H & M Hennes & Mauritz AB's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
H & M Hennes & Mauritz AB Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, H & M Hennes & Mauritz AB's Interest Coverage distribution charts can be found below:
* The bar in red indicates where H & M Hennes & Mauritz AB's Interest Coverage falls into.
H & M Hennes & Mauritz AB Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
H & M Hennes & Mauritz AB (CHIX:HMBS) has a Interest Coverage of 2.73 as of Feb. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on H & M Hennes & Mauritz AB and its competitors. This is 73% below median its historical median of 10.08. Over the past decade, H & M Hennes & Mauritz AB's Interest Coverage has ranged from 2.39 to 2,977.88. According to the industry distribution chart, H & M Hennes & Mauritz AB ranks #319 out of 741 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 43%.
Is H & M Hennes & Mauritz AB's Interest Coverage too high?
H & M Hennes & Mauritz AB's current Interest Coverage of 2.73 is 73% below median its 10-year median of 10.08. Over the past 10 years, this metric has ranged from a low of 2.39 to a high of 2,977.88. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.43. H & M Hennes & Mauritz AB's value of 2.73 is 49.7% below this industry median. Based on the distribution chart, H & M Hennes & Mauritz AB ranks #319 out of 741 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, H & M Hennes & Mauritz AB has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H & M Hennes & Mauritz AB's Interest Coverage compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, H & M Hennes & Mauritz AB ranks #319 out of 741 companies for Interest Coverage. This puts H & M Hennes & Mauritz AB in the upper half of its industry. The industry median Interest Coverage is 5.43. H & M Hennes & Mauritz AB's value of 2.73 is 49.7% below this benchmark. Historically, H & M Hennes & Mauritz AB's own Interest Coverage has ranged from 2.39 to 2,977.88 over the past decade. While the company's 10-year median is 10.08 vs. the industry median of 5.43, H & M Hennes & Mauritz AB has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.43, based on 741 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H & M Hennes & Mauritz AB's current Interest Coverage of 2.73 is 49.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on H & M Hennes & Mauritz AB and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H & M Hennes & Mauritz AB's current Interest Coverage is 2.73, which is 73% below median its own 10-year median of 10.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H & M Hennes & Mauritz AB stock overvalued right now?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB (CHIX:HMBS) is currently considered Fairly Valued. The stock's GF Value™ is kr155.07, compared to a current price of kr166.08 — trading 7.1% above its estimated fair value. The current Interest Coverage is 2.73, which is 73% below median its 10-year median of 10.08 and 49.7% below the Manufacturing - Apparel & Accessories industry median of 5.43. H & M Hennes & Mauritz AB's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For H & M Hennes & Mauritz AB (CHIX:HMBS), the current Interest Coverage is 2.73 as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is H & M Hennes & Mauritz AB (CHIX:HMBS) Overvalued in 2026?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB stock appears to be overvalued.
The current stock price of kr166.08 is trading 7.1% above its estimated GF Value™ of kr155.07.
GuruFocus considers H & M Hennes & Mauritz AB to be Fairly Valued.
Key valuation signals for CHIX:HMBS:
Interest Coverage: 2.73 (73% below median its 10-year median of 10.08)
GF Value™: kr155.07 vs. price of kr166.08 (7.1% above fair value)
Industry Position: 49.7% below the Manufacturing - Apparel & Accessories median (#319 of 741)
No single metric tells the full story. See the CHIX:HMBS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The H&M Group is a global multi-brand fashion conglomerate founded in 1947. Its flagship brand, H&M, generates the majority of the group's revenue, while ARKET, COS, and the secondhand platform Sellpy represent key sources of future growth. Geographically, 34% of group revenues are generated in Western Europe, followed by North and South America at 23%, and both Southern Europe and Asia, Oceania, and Africa at 13% each. The Nordic region accounts for approximately 9% of total sales.The company operates 4,101 stores (3,660 attributable to H&M brand) across 81 markets worldwide, the majority of which are leased. Online sales contributed slightly above 30% of total group revenue in financial 2025 .
74GF Score
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